There is no doubt about it a leasehold property in Whiston is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Whiston will meet the qualifying criteria; however a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Whiston with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Whiston lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Arthur owned a high value apartment in Whiston being marketed with a lease of a little over 61 years outstanding. Arthur informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were e-mailed by Mr Gabriel Pérez who, having acquired a one bedroom flat in Whiston in January 1996. The question was if we could approximate the premium would be to extend the lease by 90 years. Comparative properties in Whiston with an extended lease were valued around £200,800. The average ground rent payable was £65 invoiced every twelve months. The lease expired in 2085. Given that there were 60 years as a residual term we estimated the premium to the landlord for the lease extension to be between £20,900 and £24,200 plus expenses.
In 2013 we were e-mailed by Mr Jamie Brooks who, having bought a newly refurbished apartment in Whiston in April 1998. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar homes in Whiston with a long lease were worth £255,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease elapsed in 2096. Given that there were 71 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.